The barbecue restaurant sector has suffered significant bankruptcies and business closings over the last year.
Major barbecue restaurant operator FAT Brands purchased the 61-unit Smokey Bones Chain in September 2023, filed for Chapter 11 bankruptcy in January 2026, and subsequently closed all of the barbecue chain’s locations in April 2026.
A major reason for the economic decline has been the rising cost of beef in the industry, as beef brisket rose by 13% year-over-year to a record $9.64 per pound in April, according to the U.S. Department of Agriculture.
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Woody’s Bar-B-Q files for bankruptcy
And now the Melbourne, Fla.-based franchisee of popular barbecue dining chain Woody’s Bar-B-Q filed for Chapter 11 bankruptcy protection for the second time since 2023, seeking to reorganize its business again and continue operating.
Franchisee G.A.H. Bar-B-Q Inc. filed its Subchapter V petition in the U.S. Bankruptcy Court for the Middle District of Florida in Orlando on June 24, listing over $50,000 in assets and over $335,000 debts, according to court papers.
The filing comes as U.S. restaurant franchisees face rising food, labor and financing costs, forcing operators to file for Chapter 11 reorganizations.
The debtor’s largest creditors include Flagler Advance LLC, owed $100,000; Seacoast National Bank, owed $85,000; Olympus Business Capital, owed $80,000; Alliance Funding Group, owed $40,000, and Flexibility Capital Inc., owed over $30,000.
The Melbourne Woody’s Bar-B-Q restaurant did not give a reason for filing for bankruptcy in its petition. The establishment is still operating as normal, according to its website.
Debtor filed also filed Chapter 11 in 2023
G.A.H. Bar-B-Q filed for Chapter 11 bankruptcy a first time on Feb. 3, 2023, listing a higher range of assets, from $1 million to $10 million, and liabilities up to $1 million, according to Bankruptcy Observer at the time.
Woody’s Bar-B-Q’s offers a full line of barbecue grilled items, including ribs, Texas beef brisket, grilled prime rib, Carolina pulled pork, grilled and barbecue chicken, and Southern fried catfish.
The restaurant includes starters, such as chicken wings, Brunswick stew, Southern fried catfish fingers, and chicken tenders.
Woody’s Bar-B-Q founders Woody Mills and Yolanda Mills-Mawman established their first restaurant in Jacksonville, Fla., in 1980, and has expanded the chain to nine locations in Florida and a new one soon opening in Durham, N.C., according to the company’s website.
Rising wages are a big problem
In addition to rising beef costs, restaurants face rising labor costs that have added to their expenses.
Franchise restaurant analysts cite rising wages as one of the top expenses causing higher menu prices that discourage diners.
“High-wage states/markets are amongst the hardest in the restaurant industry,” Michael J. Ingram, vice president and principal at National Franchise Sales, told TheStreet’s Kirk O’Neil in an email.
“Franchisees can only raise their menu prices so far to make up for higher expenses, but as they lose customers, it becomes an uphill battle to cover debt they already have in place along with overall higher expenses,” Ingram said.
Woody’s Bar-B-Q locations:
- Melbourne, 2227 West New Haven Ave., Melbourne, Fla.
- Jacksonville (University Blvd.), 1638 University Blvd., Jacksonville, Fla.
- Jacksonville (Powers Ave.), 5930 Powers Ave., Jacksonville, Fla.
- Green Cove Springs, 1301 N. Orange Ave., Green Cove Springs, Fla.
- Holly Hill, 1593 North Nova Road, Holly Hill, Fla.
- Lake Wales, 19501 US Highway 27, Lake Wales, Fla.
- Macclenny, 1482 South 6th Street, Macclenny, Fla.
- Sebastian, 13600 US Highway 1, Suite 18, Sebastian, Fla.
- Wauchula, 902 S. 6th Ave., Wauchula, Fla.
- Coming Soon: Durham, 3500 N. Roxboro St., Durham, N.C.
- Source: Woody’s Bar-B-Q.
Related: 60-year-old dining chain’s bankrupt franchisee closes locations